Leasing and Letting

Question 1

what are the options for tenant in respect of managing dilapidations at the end of the lease?

Answer 1

1. Tenant can complete the agreed works or

2. Tenant can pay a sum to the landlord to undertake the works

Question 2

What are the three forms of dilapidations schedule?

Answer 2

Interim - served on the tenant by the landlord with 3 years remaining
terminal schedule - normally served within last three years of occupation
Final schedule served at lease expiry

Question 3

Whats normally included in dilapidations schedule?

Answer 3

Outline repairting obligations from the lease
state the remedy and cost of the breach
Loss of rent if appropriate over the period to do the works
Fees + VAT for the claim for surveyors and lawyers
Negotiations conducted on a without prejudice basis
Scott Schedule produced if agreement cannot be reached - ADR setting out position

Question 4

What does the code for Leasing Business premises (1st edition 2020) deal with?

Answer 4

Highlights the mandatory requirements for NEGOTIATING A NEW LEASE
provides template for HOTs.
Guide for both landlord and tenants

Question 5

Service charge in commerical property, 1st Edition

Answer 5

The principle aim of the code is to promote best practice, uniformity, fairness and transparency in the management and administration of services charges in commercial property

Question 6

What have was the RICS advice on service charges during the

COVID-19 pandemic

Answer 6

Tenants should continue to pay their service charges as set out in their lease but landlords and occupiers may wish to negotiate appropriate temporary service charge arrangements, and these negotiations should take place in a constructive and collaborative manner.